STATEMENT by coal seam gas company Red Sky Energy that it could...

STATEMENT by coal seam gas company Red Sky Energy that it could not guarantee the integrity of one of its well casings has sent a shudder through Northern Rivers anti-coal seam gas activists.

Contained in a "review of environmental factors" prepared for Clarence Moreton Resources Pty Ltd, which is linked to Red Sky, the statement related to a core sample well drilled at Talma, about 40km south of Casino.

The core well was drilled beyond 800m and through the water table.

The review document, dated March 2012, formed part of an application by the company to drill a new pilot well at the site which is located within petroleum exploration license (PEL) 457.

The application to drill a new well about 10 metres to the east of the existing well was ultimately approved by the State Government.

However, a statement which sought to explain why the company needed to drill a second well has caused the concern.

"(Clarence Moreton Resources/Red Sky Energy) has decided to not use the previously drilled Talma exploration core hole for the proposed Talma Pilot as it was felt the integrity of the casing could not be guaranteed," it read.

Red Sky Energy managing director Rohan Gillespie said the statement could be misinterpreted.

But he said there was "absolutely no concern" around the integrity of the well.

"It is a good thing we are leaving the current well alone and are drilling a brand new well," he said.

"The core well was plugged (with cement) in accordance with the requirements.

"Drilling out the cement plug could cause some problems with the existing casing, so better to err on the safe side."

But Mr Gillespie's assurances have not satisfied Lock The Gate Northern Rivers spokesman Ian Gaillard or spokeswoman and environmental scientist Boudicca Cerese.

"How can Red Sky Energy say they guarantee the integrity of any of their coal seam gas wells when they cannot guarantee the integrity of this well," Mr Gaillard said.

"It is an environmental nightmare waiting to happen."

Ms Cerese said the statement was of deep concern in an area home to the sensitive Bungawalbyn Wetlands.

"It is an ecologically important wetland area so drilling for gas in those wetlands really raises some big issues," she said.


Lismore Northern Star